Closing costs
It is common practice that the buyer pays the transfer of acquisition tax, bank trust set up and all other closing costs, including Notary’s fees and expenses, while the seller pays his capital gains tax and the broker’s commission.
Since January 1, 1996, the federal law regarding the real estate transfer tax, which was 2% for all the Republic of Mexico, was modified to allow each of the Mexican states to determine its own tax. The range now may be from 2-4% of the tax appraisal value, which is generally less than the sales value.
The rest of the closing costs, which exclude the transfer cost mentioned above, vary from 3-5% or more of the appraised tax value, depending on the particular state. These percentages are applied to the highest value of the following: The amount for which the property is sold, The value of the official tax appraisal, The value designated by the property assessment authorities.
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